San Francisco & Bloomfield Hills, Michigan – July 14, 2014 – Pillar, a Guggenheim Partners affiliate and an industry leader of financing solutions for affordable housing, announced today that it has originated a $20.7 million FHA/HUD loan for the acquisition and rehabilitation of Milham Meadows Apartments, a 300-unit property located on the corner of Milham Road and Oakland Drive in Portage, Michigan. The property is fully leased and will remain fully tenanted through the rehabilitation of all units and grounds.
Peter Nichol, Managing Director in Pillar’s San Francisco office originated the transaction working closely with Pillar’s FHA lending team based in Bloomfield Hills, Michigan including Mark Wiedelman, President of the firm’s FHA lending division and Nancy A. Ludwick, Chief FHA Underwriter. The affordable housing team secured a construction and permanent mortgage loan to facilitate the substantial rehabilitation of the property with short term tax exempt bonds and 4% tax credits. Pillar coordinated with all State and Federal agencies to close the loan and initiate the construction in time to meet tight regulatory timelines faced by the borrower. The transaction closed on June 20, 2014.
“We worked closely with the Detroit HUD office and the Michigan State Housing Development Authority to meet Federal and State affordable housing requirements and close the loan in less than four months,” said Mr. Nichol. “This is an extremely high profile affordable housing preservation project that will benefit from millions of dollars of capital invested in enhancing and preserving the property for years to come. Everyone involved recognizes the tremendous community benefits.”
The borrower, Integra Property Group, is utilizing Pillar’s acquisition loan and proceeds from the sale of low income housing tax credits to purchase the property and to rehabilitate a number of elements, including a substantial renovation of energy and unit upgrades, as well as capital systems upgrades. The transaction will serve all residents, and the rehabilitation will not result in any tenant displacement. Integra Property Group is a Seattle-based multifamily investment and advisory firm focused on affordable housing preservation. The Integra team has developed or acquired over $500 million in multifamily investments in the past decade, comprising over 10,000 units across dozens of affordable apartment communities nationwide.
“Pillar did an outstanding job of working with us and each Federal and State agency to create a highly customized solution that addressed a complex set of requirements, and we look forward to working with them in the future,” said Hans Juhle, Managing Member of Integra Property Group. “The preservation of Milham Meadows will ensure hundreds of low-income households in west Michigan receive access to high-quality affordable housing.”
Pillar and its affiliates are leading providers of financing solutions for multifamily and healthcare properties. The Pillar companies include a national Fannie Mae Delegated Underwriter and Servicing (DUS) lender for both conventional and affordable loans, a Freddie Mac Program Plus and Targeted Affordable Seller Servicer, a MAP-approved Federal Housing Administration lender, and an approved Ginnie Mae Multifamily issuer specializing in construction and permanent multi-family and healthcare debt financings. Pillar provides a full array of financing solutions to owners of multifamily properties, including financing solutions for market-rate and affordable-housing multifamily mortgages, student housing, senior housing, manufactured housing and credit facilities.
Through its merger with Cohen Financial, Pillar has increased access to conventional commercial real estate capital users and providers. In addition, it is now an Above-Average rated Primary and Special Servicer and services over $22 billion of loans for a variety of clients.